OCBC Bank: Geopolitical conflicts rarely have long-term impacts. The Trump administration hopes to end the conflict before the midterm elections.

OCBC Bank analyst Aftah Rahman stated in a report that despite the ongoing Middle East conflict, investors should not panic but maintain a long-term perspective. While it is understandable that the market’s instinctive reaction is to seek safety, geopolitical developments rarely have a lasting impact on the market unless they cause significant economic consequences. A key factor is the speed of conflict resolution; the Trump administration is motivated to end the conflict quickly before the upcoming midterm elections. Given OPEC+’s decision to increase production, oil prices may also be suppressed.